https://www.taxtmi.com/caselaws?id=8974 A statutory fiction used for penalty computation under the Income-tax Act must be applied consistently within the provision, but it cannot be extended beyond its language. A firm registered under the 1922 Act could be treated as an unregistered firm for penalty computation where the 1961 Act applied to the default, and that status accepted in assessment could not be reopened for penalty purposes. Tax paid by partners on their individual shares could not be set off against the firm's penalty liability because the firm and partners are separate taxable entities. The penalty rate of two per cent per month was mandatory and not reducible below that level, subject only to the statutory ceiling. en-us Wed, 19 Jan 1972 00:00:00 +0530 Wed, 17 Jun 2009 18:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8974 A statutory fiction used for penalty computation under the Income-tax Act must be applied consistently within the provision, but it cannot be extended beyond its language. A firm registered under the 1922 Act could be treated as an unregistered firm for penalty computation where the 1961 Act applied to the default, and that status accepted in assessment could not be reopened for penalty purposes. Tax paid by partners on their individual shares could not be set off against the firm's penalty liability because the firm and partners are separate taxable entities. The penalty rate of two per cent per month was mandatory and not reducible below that level, subject only to the statutory ceiling. Case-Laws Income Tax Wed, 19 Jan 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8974